One-glance verdict
Undervalued
$564.12 our estimate vs market $373.69
Wall Street consensus: $437.57 (-22.4% lower than our fair-value estimate)
34% below our estimate, below the bear case
Fundamentals snapshot
Affiliated Managers Group, Inc.
AMG · NYQ · Financial Services · Asset Management
Current price
$373.69
52-week range
$230.10 - $392.92
Market cap
$9.66B
Balance sheet
Stretched
3.48x Stretched
Net debt $2.70B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 9.4% last year.
- Reward Returns 24.3% on equity, ahead of 83% of its peers.
- Risk Net debt grew 45.4% over 3 years.
- Risk Stock trades 31.7% above its 5-year average P/E.
What this company does
Affiliated Managers Group, Inc.
Affiliated Managers Group (AMG) is a company that invests in many different, independent investment firms (companies that manage money for clients) instead of picking individual stocks. AMG makes its money by taking a share of the fees its partner firms earn, giving it a diversified stream of income that isn't tied to the success of just one investment strategy.
How the company got here
Affiliated Managers Group (AMG) was founded in 1993 with a unique idea: instead of building one giant investment firm, it would buy stakes in many smaller, successful ones. [4, 6] The company's goal was to provide these independent firms with cash for growth and a plan for their founders to eventually retire, a process known as succession planning. [3, 10] After going public in 1997, AMG began partnering with a wide variety of investment managers, initially focusing on traditional stock-picking firms. [3, 4] Over the years, it has expanded by investing in firms that specialize in more complex areas like hedge funds and private equity (investing in companies not available on the public stock market). [3, 6]
What it actually does
AMG is best thought of as a holding company that owns pieces of many different investment management firms, which it calls 'Affiliates'. [1, 3] It doesn't offer 'AMG' branded investment products; instead, customers invest in the funds and strategies managed by these independent Affiliates. [3] AMG acts as a strategic partner, providing its Affiliates with a global sales force to find new clients and capital to grow their business. [1, 8] In exchange for this support, AMG receives a share of the fees and profits generated by its partner firms, which keep their own names, employees, and investment independence. [1, 7]
Alternative Strategies
This is the company's largest and most important business, making up a majority of its earnings. [1] This segment includes investment firms that focus on non-traditional assets, such as private equity, private credit (lending directly to companies), and hedge funds (funds that use complex tactics to seek high returns). [1] Clients, typically large institutions like pension funds, pay these firms high fees for their specialized expertise and the potential for returns that don't just follow the stock market. [1, 3] This area is a major focus for AMG because it is growing quickly and is less threatened by the shift to low-cost index funds. [1]
Traditional Equities
This part of the business represents the classic style of investing and is a large, established piece of the company. [1] The Affiliate firms in this segment manage money by picking individual stocks in U.S., international, and emerging markets (countries with developing economies). [1, 13] Their clients are trying to beat the overall market's performance through the skill of the investment manager. This business is very competitive and faces pressure from passive investing options like index funds, which simply track a market index at a very low cost. [1]
Multi-Asset & Fixed Income
This is a smaller but still significant part of AMG's portfolio of businesses. [1] It includes Affiliates that manage strategies across a mix of different investment types, like stocks, bonds, and other assets, all in one portfolio. It also includes firms that specialize in fixed income (investments like bonds that pay a predictable stream of interest). [1, 13] These products are often used by investors looking for a more balanced approach or a steady income stream from their investments.
What management is betting on now
Management's current strategy is heavily focused on investing in more 'alternative' investment firms, especially those in private markets. [3, 11] They believe these specialized areas, like private credit and real estate, have strong, long-term growth trends and generate higher fees. [3, 12] The company is also working to create new products tailored for the U.S. wealth market, making these complex strategies available to more individual high-net-worth investors (people with a large amount of money to invest). [5, 12] Finally, AMG plans to continue using its cash to invest in new and existing Affiliates while also returning capital to its own investors through dividends (a share of the profits) and share buybacks (buying its own stock to make the remaining shares more valuable). [8]
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$264.50M
FY2024 Q4
$211.40M
FY2025 Q1
$207.30M
FY2025 Q2
$229.40M
FY2025 Q3
$275.90M
FY2025 Q4
$254.50M
FY2026 Q1
$295.50M
FY2026 Q2
$239.00M
Revenue
$640.70M
Net income
$185.90M
Diluted EPS
6.95
Operating cash flow
$239.00M
Free cash flow
$239.00M
Fetching…
Sources
Revenue
$544.90M
Net income
$110.40M
Diluted EPS
3.84
Operating cash flow
$299.30M
Free cash flow
$295.50M
Fetching…
Sources
Revenue
$556.60M
Net income
$347.50M
Diluted EPS
10.87
Operating cash flow
$256.40M
Free cash flow
$254.50M
Fetching…
Sources
Revenue
$528.00M
Net income
$212.40M
Diluted EPS
6.87
Operating cash flow
$277.10M
Free cash flow
$275.90M
Fetching…
Sources
Revenue
$493.20M
Net income
$84.30M
Diluted EPS
2.80
Operating cash flow
$230.80M
Free cash flow
$229.40M
Fetching…
Sources
Revenue
$496.60M
Net income
$72.40M
Diluted EPS
2.20
Operating cash flow
$208.90M
Free cash flow
$207.30M
Fetching…
Sources
Revenue
$524.30M
Net income
$162.20M
Diluted EPS
4.95
Operating cash flow
$212.50M
Free cash flow
$211.40M
Fetching…
Sources
Revenue
$516.40M
Net income
$123.60M
Diluted EPS
3.78
Operating cash flow
$265.20M
Free cash flow
$264.50M
Fetching…
Sources
Is it cheap or expensive?
Fair value $564.12 vs current price $373.69
Wall Street consensus is the average analyst price target: $437.57 (-22.4% lower than our fair-value estimate).
Our most-likely fair value is $564.12 a share — about 51.0% above today's price of $373.69, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $2.7B. Interest coverage 3.5x.
Net debt
$2.70B
Interest coverage
3.48x
Affiliated Managers Group, Inc.'s profit covers its interest bill about 3.5 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
AMG
BASELINE
Affiliated Managers Group, Inc.
Total debt $3.20B Interest coverage 3.48x This is the baseline the peer rows are being compared against.
Total debt $3.57B Interest coverage 11.59x +233% vs AMG Carries about 3.3x more debt cushion than AMG.
Total debt $1.62B Interest coverage -8.43x -100% vs AMG This peer has almost no interest-payment cushion compared with AMG.
Total debt $4.34B Interest coverage 2.79x -20% vs AMG Carries about 1.2x less debt cushion than AMG.
What you should know
The case for and against AMG
3 Rewards
3 Risks
Rewards
-
Revenue grew 9.4% last year.
-
Returns 24.3% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Net debt grew 45.4% over 3 years.
-
Stock trades 31.7% above its 5-year average P/E.
-
Operating margin compressed from 34.6% to 30.4% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
13.12x
Forward P/E
8.73x
P/B
3.20x
P/S
4.26x
EV/EBITDA
21.62x
PEG ratio
0.63x
Profitability
How much profit each dollar creates
Gross margin
50.3%
Operating margin
30.4%
Net margin
37.7%
ROE
24.3%
ROA
3.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.76x
Current ratio
101.31x
Quick ratio
101.31x
Total debt
$3.20B
Total cash
$502.80M
Growth
How the business has been compounding
Revenue TTM
$2.27B
Revenue 5Y CAGR
-3.7%
EPS TTM
28.48
EPS 5Y CAGR
-3.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.07B
Free CF TTM
$967.10M
FCF margin
42.6%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.1%
Last ex-div date
2026-08-10